When construction slows, constractors cut their profit margins just to keep their crews busy. That happens every time in every downturn.
Construction costs are going down, not up.
It sounds like you’re bringing up the replacement cost of buildings argument. Well, there are plenty parts of America where houses have droped below replacement costs. In Detroit houses are selling below the cost of building a new house so the cost of land is actually negative. But there are still no buyers.
As far as entitlements go, they are part of the cost of land and have nothing to with the physical buildings themselves.
